Data Protection as a Service (DPaaS) Market Trends

Growth Drivers

Increase in Internet Users Globally

The World Bank has published the report of International Telecommunication Union which states that in 2017, 49% out of every 100 people on the planet used internet on daily basis. According to another report by Ericsson, it is predicted that by the end of 2024, there will be 1.9 Billion 5G cellular subscriptions globally.

DPaaS are deployed to safely encrypt and store the data generated so as to prevent data theft and privacy concerns by the ISPs. This factor is expected to drive the market growth during the forecasted period.

IoT devices on the Rise

The “Internet of Things” device sales are increasing enormously and it is estimated that around 41 Billion IoT devices will be sold by 2027, as per the data suggested by the World Bank. These devices are for multipurpose use and are being utilized in household, healthcare, and manufacturing among other industies. The need to encrypt and store the vast amount of data being generated by people across the world by companies is crucial for the business model and strategic decisions.

Rising Security Risks and Cyber Threats

In this contemporary globalized and digital world, protecting the company’s IP (Intellectual Property) not just from competitors but from potential hackers is of the highest concerns and DPaaS offer effective solutions. This is anticipated to boost the market growth over the forecast period.

Aftermath of COVID’19

Cyber-attacks and data fraud cases across the world have increased dramatically in the past few months while the globe is fighting the COVID-19 pandemic. Thus data protection as a service (DPaaS) market is expected to witness a significantly growth in future.

Challenges

High costs

A potential factor that might affect the growth of the market is the high costs associated with the DPaaS. Designing and deploying data protection solutions involves development of complex algorithms and infrastructure to support them, i.e., capital investment is high. The SMEs and other small scale businesses do not have the financial capability to neither develop nor purchase these services.

Lack of Skilled Professionals

Lack of skilled professionals to effectively deploy these resources along with constraints on time that should be invested in training the individuals to understand these solutions are seen as important factors that are predicted to negatively affect the growth of the market.